Monday, 21 May 2018

Looking for the Best Financing: The 5 Loan Options to Start Your Restaurant Business

Many people want to start and manage a
restaurant business. Why not? Aside from it’s cool nowadays to have a
restaurant, it’s also a promising business because it can provide you excellent
profits. The fact that there are a lot of foodies looking for a restaurant that
can serve them to satisfy their appetites is an excellent proof of that claim.

However, opening a restaurant business
is not easy. Just looking for the financing alone can already give you a
helluva of challenges. That’s why it will do you right if you’re familiar with
the different loan options to fund your business. For a little help, here’s a
list of the best loans for that purpose.

Working Capital Loans

This working capital is an excellent
option for those newbie owners who want to get financing for their restaurant
business. Restaurant owners typically use this loan to fund business expenses
like the salary and wages of their employees. A working capital loan is also
quick and no hassle to get.

Equipment Loans

The cost of the equipment that you’ll
purchase to run your restaurant business can be too costly, especially for a
businessman who’s just starting. Take, for instance, the modern equipment that
you’ll use for cooking such as industrial ovens. An industrial oven doesn’t
come that cheap because it can cost hundreds of your money.

SBA or Small Business Administration Loans

If you’re living in the US, there’s a
government agency specially created for proprietors of small businesses who
want to apply for a loan to open a business. This agency is called as SBA or
Small Business Administration.

This US government agency offers
different loans such as the 7(a) loan and the CDC/504 loan for you to start
your small business.

The SBA 7(a) loan is a loan intended to
assist those small business owners living in underprivileged areas. These small
business owners can use the 7(a) loan for their working capital and furniture
and equipment expenses.

The CDC/504 loan, on the other hand, is
another excellent loan option if you want to establish a restaurant. This loan
can cover your fixed, long-term assets such as the real estate property for
your business.

Franchise Loans

Franchise loan is ideal for those folks
who want to start a franchise restaurant business from a famous restaurant
business chain. This type of loan offers those potential business owners with
workable terms of credits and other financial opportunities.

The restaurant chain where you get a
franchise will provide you with recommendations of various lenders for your
business financing. Typically, these restaurant chains know big banks that will
give you an excellent selection of loan offer to open your restaurant business.

Lines of Credit

Lines of credit is another of those
loan options that will give you fewer hassles in applying for a small business
financing. With your credible bank credit history, you can now ask for lines of
credit.

However, there’s a catch to this type
of business loan: it’s a little bit expensive. Lines of credit loan demand
borrowers of paying their loans on a weekly basis. For you to get viable lines
of credit loan, you need to have a strategic budget plan for it. You can get
advice from experts at Ashe Morgan
for that purpose.

Takeaway

It’s essential that you have a viable
financing foundation to start your restaurant business. You can find various
business loans nowadays for that purpose. However, you need to study these
loans for you to get the best financing for your business. You can take some
knowledge from the list of the best loan options above to open your dream
restaurant.